March’s PPI showed food costs climbed 2.4% from a month earlier, the largest increase since May. The jump was driven by higher grain, vegetable, cooking oil and pork prices. Economists explain the consumer price index will likely show these food price increases in the future. From a year earlier, food prices advanced 16.2%, the largest increase in annual records back to 2010, PPI data showed. One economist explained that consumer prices for commodity-based food categories lag the producer price by one to two months. Consumer food prices have been increasing for months. However, economists note supply shortages will likely mean higher food prices will continue into the foreseeable future.
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Producer Price Index has largest monthly gain since December 2009... The U.S. producer price index (PPI) increased 1.4% from February, the largest monthly gain since the government revamped the series in December 2009, after rising 0.9% in February, according to the Bureau of Labor Statistics. The PPI jumped 11.2% from year-ago, the largest year-on-year increase since November 2010, compared to a 10.3% increase in February. Economists polled by Reuters expected the PPI to rise 1.1% for the month and 10.6% versus year-ago. In the 12 months through March, the core PPI soared 7.0% after increasing 6.7% in February. The core monthly PPI rose 0.9% from February.
The index for final demand goods rose 2.3% in March, the same as in February. The index for final demand services increased 0.9%. Over half of the broad-based advance in March can be traced to a 5.7% jump in prices for energy. Diesel fuel prices jumped 20.4%. Food prices climbed 2.4%, though the cost of beef and veal fell 7.3%. The indexes for gasoline, fresh and dry vegetables, jet fuel, iron and steel scrap, and electric power also increased.
